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SBI Education Loan - A Guide

Updated on July 15, 2024 , 45743 views

The State Bank of India (SBI) is one of the top banks in India providing education loans at competitive interest rates. It is one of the best options for students wishing to pursue higher education in India and abroad. SBI offers five different education loan options to suit all your educational needs. Right from honing your skills to getting that PhD, SBI education loan offers the right financial support.

SBI Education Loan

You also have the option of transferring your current education loan to SBI and enjoy the benefits.

Types of SBI Education Loan

1. SBI Student Loan Scheme

The SBI Student Loan can be applied after the admission has been secured in the concerned university. The attractive interest rate for abroad is one of their best features offered by the bank.

Features of SBI Student Loan Scheme

  • Security

The SBI student loan scheme provides maximum security. For loan up to Rs. 7.5 lakh, a parent or a guardian is required as co-borrower. There is no need for a Collateral or a third party guarantee. But, for a loan above Rs. 7.5 lakh, a parent or a guardian is required along with tangible collateral security.

  • Loan Repayment

The SBI education loan repayment is up to 15 years after the completion of the course period. The repayment period will start after one year of the completion of the course. If you have also applied for a second loan later, then the combined loan amount can be repaid in 15 years after completing the second course.

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  • Margin

There is no margin for a loan up to Rs. 4 lakhs. A 5% margin applies to loans above Rs. 4 lakhs for studies in India and 15% is applied for students applying to study abroad.

  • EMI Payment

The EMI for the loan will be based on the accrued interest during the moratorium period and course period, which will be added to the principal amount.

  • Loan Amount

If you are looking to pursue studies in India, you can avail loan up to Rs. 30 lakh for medical courses and Rs. 10 lakh for other courses. The higher loan limit will be considered on case to case Basis. The maximum loan available will be Rs. 50 lakh.

If you are looking to pursue further education abroad, you can avail loan from Rs. 7.5 lakh to Rs. 1.50 crore. The higher loan limit for studying overseas will be considered under Global Ed-vantage Scheme.

2. SBI Scholar Loan Scheme

This scheme is for students wishing to apply to premier education institutes in India. SBI Scholar Loan list of institutions includes the IITs, IIMs, National Institute of Technology (NITs), Army College of Medical Sciences, Manipal Institute of Technology, Delhi College of Engineering and BITS Pilani, etc.

The loan amount can be used to cover the majority of the educational expenses.

Features of SBI Scholar Loan

  • Financing

You can avail 100% financing with SBI scholar loan. There are no processing fees attached to it.

Check the maximum loan limit below:

Category No Security, only Parent/Guardian as co-borrower (maximum loan limit With tangible collateral of full value with parent/guardian as co-borrower (maximum loan limit)
List AA Rs. 40 lakhs -
List A Rs. 20 lakhs Rs. 30 lakhs
List B Rs. 20 lakhs -
List C Rs. 7.5 lakhs Rs. 30 lakhs
  • Repayment Period

You can pay the loan within 15 years after the course period is over. There will be 12 months of repayment holiday. If you have availed a second loan for higher studies later, you can repay the combined loan amount 15 years after the completion of the second course.

  • Courses

You can apply for a regular full-time degree or diploma courses, full-time executive management courses, part-time graduation, post-graduation courses from select institutes, etc.

  • Expenses covered

The expenses covered in the loan financing is the examination, library, laboratory fees, purchase of books, equipment, instruments, purchase of computer, laptop, travel expenses or expenses on the exchange program.

SBI Scholar Loan Interest Rate 2024

SBI Scholar Loan scheme interest rate differs for varied premier institutes.

Here's the list of top institutions in India along with their interest rates-

List 1 month MCLR Spread Effective Interest Rate Rate Type
ROI 6.70% 0.20% 6.90% (with co-borrower) Fixed
ROI 6.70% 0.30% 7.00% (with co-borrower) Fixed
All IIMs & IITs 6.70% 0.35% 7.05% Fixed
Other institutes 6.70% 0.50% 7.20% Fixed
All NITs 6.70% 0.50% 7.20% Fixed
Other institutes 6.70% 1.00% 7.70% Fixed
All NITs 6.70% 0.50% 7.20% Fixed
Other institutes 6.70% 1.50% 8.20% Fixed

3) SBI Global Ed-Vantage

The SBI global ed-vantage is an education loan to pursue studies overseas. This included pursuing regular graduate, post-graduate, degree/diploma /certificate/doctorate courses in universities based in USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom.)

Features of SBI Global Ed-vantage

  • Loan Amount

You can avail a higher loan amount with SBI global ed-vantage scheme. The loan amount starts from Rs. 7.50 lakh up to Rs. 1.50 crore.

  • Tax Benefit

Another major advantage is the tax benefit under Section 80(E).

  • Coverage

The loan amount covers the fees payable to the college and hostel. It also includes examination, library and laboratory fees. The travel expenses along with the purchase of books, required equipment, uniforms, instruments, computer, etc., are covered under the loan scheme.

  • Security

Tangible collateral security is required in the scheme. Collateral security offered by the third party will also be accepted.

  • Processing Fees

The processing fees per application is Rs. 10,000.

  • Repayment Tenure

You can pay the fees within 15 years post the completion of the course.

SBI Global Ed-Vantage Interest Rate 2024

The SBI Global Ed-Vantage scheme offers affordable interest rate for loans above Rs. 20 lakhs.

It is mentioned below:

Loan Limit 3 year MCLR Spread Effective Interest Rate Rate Type
Above Rs. 20 lakhs and Up to Rs. 1.5 crore 7.30% 2.00% 9.30% Fixed

4. SBI Takeover of Education Loans

This SBI education loan offers you an opportunity to switch your existing education loan to SBI. This will help you reduce your monthly EMIs.

Features of SBI Takeover of Education Loan

  • Loan Amount Consideration

Under this loan scheme, education loans up to Rs. 1.5 crore can be considered.

  • Repayment Tenure

You can avail a flexible repayment option. The repayment tenure is up to 15 years.

  • EMI Payment

You can pay back your EMIs through Net Banking or Mobile Banking and cheques.

  • Security

The collateral security that is acceptable to the bank has to be a minimum of 100% of the value of the proposed loan.

Loan Limit 3 year MCLR Spread Effective Interest Rate Rate Type
Above Rs. 10 lakhs and Up to Rs. 1.5 crore 7.30% 2.00% 9.30% Fixed

5) SBI Skill Loan

An SBI skill loan is for Indians who want to take up courses to develop their skills. The loan scheme is for covering the costs of taking up the course.

Features of SBI Skill Loan

  • Loan Amount

The minimum loan amount you can avail is Rs. 5000 and the maximum loan amount is Rs. 1,50,000.

  • Coverage

The loan amount will cover the tuition or course fees along with the purchase of the books, equipment and instruments.

  • Repayment Tenure

The repayment tenure varies based on the loan amount. If you have availed a loan amount of Rs. 50,000, the loan amount has to be paid within 3 years. If your loan is between Rs. 50,000 to Rs. 1 lakh, the loan amount has to be paid within 5 years. For loan above Rs. 1 lakh the repayment period is up to 7 years.

SBI Skill Loan Interest Rate 2024

Loan Limit 3 year MCLR Spread Effective Interest Rate Rate Type
Up to Rs. 1.5 lakhs 7.30% 1.50% 8.80% Fixed

Eligibility Criteria for SBI Education Loan

Nationality

You have to be an Indian national to apply for and avail the loan.

Secured Admission

You should have secured admission to professional/technical courses in select premier institutions through the entrance test or selection process.

Documents Required Under SBI Student Loan Scheme

Salaried Individuals

  • Marksheet of SSC and HSC
  • Graduation Marksheet (if pursuing Post-graduation)
  • Entrance Exam Result
  • Proof of Course Admission (Offer Letter/ Admission Letter/ ID Card)
  • Course expenses schedule
  • Copies of the letters giving the scholarship, free-ship, etc
  • Gap certificate if applicable (this should be a self-declaration from the student with the reason for the gap in studies)
  • Passport size photographs (Student/ Parent/ Co-borrower/ Guarantor)
  • Asset-liability statement of Co-applicant ( This is applicable for loans above Rs. 7.5 lakhs)
  • Latest Salary Slip
  • Form 16 OR latest IT Return

Non-Salaried Individuals

  • Bank Account Statement for the last 6 months of parent/ guardian/ guarantor
  • Business address proof (if applicable)
  • Latest IT Returns (if applicable)
  • Copy of Sale Deed and other documents of title to the property in respect of immovable property offered as collateral security / Photocopy of Liquid Security offered as collateral
  • PAN Card number of the student/ parent/ co-borrower/ guarantor
  • aadhaar card number is mandatory if you are eligible under various interest subsidy scheme of the government of India
  • Submission of Officially Valid Documents (OVD) like Passport, Driving License, Copy of Aadhar card, Voters ID, Job card from NRGEA signed by an officer from the state government, a letter issued by the National Population Register containing details of name and address

Please note that if you don’t have the updated address while submitting the OVD, the following documents can be provided as proof for address

  • Utility Bill not more than 2 months old like electricity bill, piped gas, water bill, telephone, post-paid phone bill)
  • Property of Municipal tax Receipt
  • Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public-Sector Undertakings, if they contain the address;
  • Letter of allotment of accommodation from employers issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions, listed companies and Lease and licence agreements with such employers allotting official accommodation.

SBI Education Loan Customer Care

You can Call on the following numbers to address any issue or queries-.

  • Toll-free number: 1800 11 2211
  • Toll-free number: 1800 425 3800
  • Toll number: 080-26599990

Conclusion

SBI education loan brings peace of mind with flexible repayment tenure and affordable interest rates. Read all the loan related documents carefully before applying for the loan.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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